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HDFC Securities has buy call on Aarti Industries with a target price of Rs 1380. The current market price of Aarti Industries Ltd. is Rs 966.9. Time period given by analyst is one year when Aarti Industries Ltd. price can reach defined target.
Aarti Industries Ltd., incorporated in the year 1984, is a Mid Cap company (having a market cap of Rs 36244.97 Crore) operating in Pharmaceuticals sector.
Aarti Industries Ltd. key Products/Revenue Segments include Speciality Chemicals and Pharmaceuticals for the year ending 31-Mar-2021.
Financials
For the quarter ended 31-12-2021, the company reported a Consolidated Total Income of Rs 2376.04 Crore, up 53.09 % from last quarter Total Income of Rs 1552.10 Crore and up 100.14 % from last year same quarter Total Income of Rs 1187.21 Crore. Company reported net profit after tax of Rs 772.54 Crore in latest quarter.
Investment Rationale
The brokerage maintains BUY recommendation on Aarti Industries (AIL) with a target price of INR 1,380/share. AIL's constant focus on Capex and R&D will enable it to remain competitive and expand its customer base. The toluene segment in India is mainly untapped and catered to through imports; AIL will benefit in the long term by entering this segment. Q3 EBITDA/APAT were 203/339% above estimates, mainly attributable to INR 6.1bn of one-off termination fees in EBITDA, and lower-than-expected depreciation and finance cost.
Promoter/FII Holdings
Promoters held 44.21 per cent stake in the company as of 31-Dec-2021, while FIIs owned 12.27 per cent, DIIs 14.54 per cent.
Aarti Industries Ltd., incorporated in the year 1984, is a Mid Cap company (having a market cap of Rs 36244.97 Crore) operating in Pharmaceuticals sector.
Aarti Industries Ltd. key Products/Revenue Segments include Speciality Chemicals and Pharmaceuticals for the year ending 31-Mar-2021.
Financials
For the quarter ended 31-12-2021, the company reported a Consolidated Total Income of Rs 2376.04 Crore, up 53.09 % from last quarter Total Income of Rs 1552.10 Crore and up 100.14 % from last year same quarter Total Income of Rs 1187.21 Crore. Company reported net profit after tax of Rs 772.54 Crore in latest quarter.
Investment Rationale
The brokerage maintains BUY recommendation on Aarti Industries (AIL) with a target price of INR 1,380/share. AIL's constant focus on Capex and R&D will enable it to remain competitive and expand its customer base. The toluene segment in India is mainly untapped and catered to through imports; AIL will benefit in the long term by entering this segment. Q3 EBITDA/APAT were 203/339% above estimates, mainly attributable to INR 6.1bn of one-off termination fees in EBITDA, and lower-than-expected depreciation and finance cost.
Promoter/FII Holdings
Promoters held 44.21 per cent stake in the company as of 31-Dec-2021, while FIIs owned 12.27 per cent, DIIs 14.54 per cent.
(Disclaimer: Recommendations given in this section or any reports attached herein are authored by an external party. Views expressed are that of the respective authors/entities. These do not represent the views of Economic Times (ET). ET does not guarantee, vouch for, endorse any of its contents and hereby disclaims all warranties, express or implied, relating to the same. Please consult your financial adviser and seek independent advice.
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